The ease of the application process is highlighted by the minimal requirements that are requested from borrowers. For one, there is no need to establish a good credit history. It is likewise not required for borrowers to present any type of collateral to be able to benefit from the loan. The general requirements aside from being a citizen of the United States is that the applicant should be at least 18 years old at the time of the filing of the application form.
It may also be necessary to have a checking account where electronic transfers can be accommodated. Borrowers will also be required to show proof of sufficiency of income by having a monthly income of at least $1,000 either from employment or business activities. There is no need to fax any documentation or supporting papers.
- Better repayment methods
Compared to traditional bank loans, many borrowers consider the repayment methods of instant payday loans better. This is possibly because they can actually have the advantage of repaying the loan without having to incur interest, which is completely unheard of with conventional banking facilities. The good thing about having better repayment methods is that borrowers can cancel out the loan easily, which makes them eligible immediately for another loan application.
This type of flexibility makes it one of the more preferred types of loans today. Moreover, because of the better repayment methods, borrowers can actually be assured that they will not be neck deep in financial debt after they take out the loan. In fact, some online lenders provide a built-in protection mechanism that ensures borrowers do not become buried in debt, by preventing them to take out payday loans during the same cycle and until the existing one is paid off. This translates to worry-free repayment because the monthly budget will not spin out of control unnecessarily.